FY2026 Earnings Estimate for HSBC Issued By Erste Group Bank

Key Points

• Erste Group cut FY2026 EPS for HSBC to $8.25 from $8.40, versus a consensus full‑year estimate of $8.53 per share, signaling a modest downward revision to earnings expectations.
• HSBC sharply raised its dividend to $2.25 per quarter (from $0.50), implying a $9.00 annual payout and a ~10.1% yield, with a payout ratio of 148.43% — a large, potentially unsustainable distribution boost.
• The stock trades around $89.28 (market cap ~$306.8B, P/E ~14.8) while analysts on MarketBeat average a "Moderate Buy" rating and an average price target of $63.00, well below the current share price.

HSBC Holdings plc (NYSE:HSBC - Free Report) - Equities researchers at Erste Group Bank reduced their FY2026 earnings per share (EPS) estimates for shares of HSBC in a note issued to investors on Monday, April 27th. Erste Group Bank analyst S. Lingnau now forecasts that the financial services provider will post earnings of $8.25 per share for the year, down from their previous estimate of $8.40. The consensus estimate for HSBC's current full-year earnings is $8.53 per share.

A number of other research analysts have also recently weighed in on HSBC. Zacks Research upgraded shares of HSBC from a "hold" rating to a "strong-buy" rating in a report on Monday, April 6th. The Goldman Sachs Group started coverage on shares of HSBC in a report on Thursday, March 26th. They set a "buy" rating on the stock. Weiss Ratings downgraded shares of HSBC from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, April 10th. BNP Paribas Exane lowered HSBC from an "outperform" rating to a "neutral" rating in a research report on Tuesday, April 14th. Finally, Morgan Stanley began coverage on HSBC in a report on Wednesday, January 14th. They issued an "equal weight" rating for the company. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $63.00.

HSBC Stock Down 0.8%

Shares of NYSE:HSBC opened at $89.28 on Thursday. The firm has a market capitalization of $306.83 billion, a PE ratio of 14.76, a price-to-earnings-growth ratio of 0.86 and a beta of 0.54. HSBC has a 1 year low of $54.97 and a 1 year high of $94.79. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.87 and a quick ratio of 0.87. The firm's 50-day moving average is $86.25 and its two-hundred day moving average is $80.07.

HSBC (NYSE:HSBC - Get Free Report) last announced its earnings results on Saturday, February 14th. The financial services provider reported $1.35 EPS for the quarter. The company had revenue of $17.70 billion during the quarter. HSBC had a return on equity of 13.10% and a net margin of 16.07%.

HSBC Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Friday, March 13th will be given a $2.25 dividend. The ex-dividend date of this dividend is Friday, March 13th. This represents a $9.00 dividend on an annualized basis and a dividend yield of 10.1%. This is a boost from HSBC's previous quarterly dividend of $0.50. HSBC's payout ratio is currently 148.43%.

Institutional Investors Weigh In On HSBC

Several institutional investors have recently modified their holdings of the company. Cornerstone Planning Group LLC increased its holdings in HSBC by 30.7% in the fourth quarter. Cornerstone Planning Group LLC now owns 498 shares of the financial services provider's stock valued at $43,000 after buying an additional 117 shares during the last quarter. Lester Murray Antman dba SimplyRich boosted its position in shares of HSBC by 1.0% during the 4th quarter. Lester Murray Antman dba SimplyRich now owns 12,445 shares of the financial services provider's stock worth $979,000 after acquiring an additional 123 shares in the last quarter. Ellevest Inc. increased its holdings in shares of HSBC by 0.7% in the 4th quarter. Ellevest Inc. now owns 18,219 shares of the financial services provider's stock valued at $1,433,000 after acquiring an additional 131 shares during the last quarter. Federation des caisses Desjardins du Quebec raised its position in shares of HSBC by 5.3% during the 4th quarter. Federation des caisses Desjardins du Quebec now owns 2,658 shares of the financial services provider's stock worth $209,000 after acquiring an additional 133 shares in the last quarter. Finally, Integrated Advisors Network LLC lifted its stake in HSBC by 3.9% during the first quarter. Integrated Advisors Network LLC now owns 3,571 shares of the financial services provider's stock worth $295,000 after purchasing an additional 134 shares during the last quarter. 1.48% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: HSBC's research team has turned more bullish on U.S. equities (upgrading U.S. to overweight and downgrading Europe), which can increase client engagement, trading flows and advisory fees as clients rotate into the bank’s favored exposures. HSBC upgrades U.S. equities to overweight, cuts Europe to neutral
• Positive Sentiment: HSBC named Gautam Anand to lead its Global India private banking unit — a strategic hire to deepen cross‑border wealth flows and grow higher‑margin private banking revenues tied to wealthy clients with India links. HSBC names Gautam Anand to lead Global India private banking unit
• Positive Sentiment: HSBC is acting as stabilisation coordinator/manager on a EUR 400m Webuild bond deal — evidence of ongoing ECM/Debt capital markets activity that supports fee income. HSBC Continental Europe: Pre Stabilisation Notice
• Positive Sentiment: Canara HSBC Life Insurance (JV) reported stronger Q4 results and surged in India — positive signaling for HSBC’s insurance JV performance and franchise value in fast‑growing markets. Canara HSBC Life Insurance shares soar 10% as Q4 net profit rises 9% to Rs 35 crore
• Neutral Sentiment: HSBC is piloting quantum computing applications (noisy qubit collaboration) — a long‑horizon technology play that supports innovation narrative but has limited near‑term revenue impact. HSBC collaborates on noisy qubit real-world application
• Neutral Sentiment: HSBC is expanding Saudi private markets fund administration services — broadening product distribution in a growing region, but revenue impact will be gradual. HSBC expands Saudi private markets offering with new fund administration services
• Negative Sentiment: Hong Kong regulators warned about fake stablecoins impersonating HSBC — a security/reputational issue that could require remediation, client communication and increase compliance costs. Hong Kong warns of fake stablecoins impersonating HSBC and Anchorpoint
• Negative Sentiment: Coverage criticizing HSBC’s handling of the Education Africa matter and reports that the board could face investor dissent raise governance and reputational risks that can pressure the stock and invite activist scrutiny. The fallout from HSBC's handling of Education Africa: a call for accountability HSBC board could face investor dissent at shareholder meeting

HSBC Company Profile

HSBC Holdings plc NYSE: HSBC is a multinational banking and financial services organization headquartered in London. It traces its origins to the Hongkong and Shanghai Banking Corporation, founded in 1865 to facilitate trade between Europe and Asia, and has since grown into one of the world's largest banking groups. The company is publicly listed in multiple markets, including the London Stock Exchange, the Hong Kong Stock Exchange and as an American depositary receipt on the New York Stock Exchange.

HSBC operates a universal banking model, serving retail, commercial, corporate and institutional clients.

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